FYI: Despite an uptick in volatility, a rise in Treasury yields, and increasing fears of imminent inflation over the last two weeks, fund investors have stayed the course (at least so far). While the major broad-based indices suffered gut-wrenching declines over the last two weeks, mutual funds (including ETFs) did not witness wholesale redemptions. Although the average retail investor is generally slow to change portfolio allocations, authorized participants (APs, those institutional investors responsible for creating and redeeming ETF shares) are fairly quick to make buy-and-sell decisions. For Thomson Reuters Lipper’s fund-flows week ended February 14, 2018, equity and taxable fixed income funds (including ETFs) witnessed net redemptions of only $4.6 billion and $7.8 billion, respectivel
Regards,
Ted
http://lipperalpha.financial.thomsonreuters.com/2018/02/fund-investors-stay-the-course-in-spite-of-gut-wrenching-market-declines/?utm_source=Eloqua&utm_medium=email&utm_campaign=00008DM_NewsletterLipperAlphaInsightFundInsightsWeekly_Other&utm_content=Newsletters_FundsInsightWeekly_20Feb2018